A major enhancement of MERLIN completed in 1992 has led to a transformation of its capabilities. The seventh telescope added to the array is a 32-m telescope at Cambridge which provides high sensitivity on all the longest baselines where extra collecting area is especially beneficial. The 32-m telescope is a shaped primary-Cassegrain configuration which achieves an 80 percent aperture efficiency. A change from frequency to amplitude modulation in the microwave links increased the effective bandwidth from 9 to 30 MHz. This broadbanding enables the two hands of circular polarization to be transmitted simultaneously, each in a 15 MHz bandwidth. A further improvement in the system sensitivity was achieved by cryogenically cooling the low noise amplifiers in the front-end receivers.